Allowed

Hdfc Bank Limited v. Ranjit Singh and Others

DRT8 Jul 2024OA/1042/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of dues classified as NPA from borrowers and a guarantor. The bank claimed Rs. 36.97 Lakhs plus interest. The Tribunal allowed the principal amount but reduced the claimed interest rates to a uniform 8% p.a. simple interest from the filing date.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.36,97,748 plus simple interest @8% p.a. from filing date.

Hdfc Bank Limited versus Ranjit Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1042/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.06.2022

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DATE OF DECISION: 08.07.2024 HDFC Bank Ltd., a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013 and branch office amongst other places one at Sri Muktsar Sahib, Punjab through Sh. Parampreet Singh Kahlon, Assistant Manager holder of an attorney from the Applicant Bank

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……..Applicant Versus 1. Sh. Ranjit Singh S/o Sh. Darshan Singh, R/o H.No.214, Raasta Khunnan Dhaanian Dhuhewala, Rasta Khunnan Kala Wala, Tehsil Gidderbaha, District Sri Muktsar, Punjab 2. Sh. Gurmit Singh S/o Sh. Darshan Singh, R/o H.No.214, Raasta Khunnan Dhaanian Dhuhewala, Rasta Khunnan Kala Wala, Tehsil Gidderbaha, District Sri Muktsar, Punjab (Borrowers) 3. Sh. Bohar Singh S/o Sh. Karnail Singh, R/o Village Bhundar, Tehsil Gidderbaha, District Sri Muktsar, Punjab (Guarantor) ….……Defendants Advocates: Argued by Sh. J.S. Sehgal, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.36,97,748.00 (Rupees Thirty Six Lacs Ninety Seven Thousand Seven Hundred and Forty Eight only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Assistant Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant Nos.1 and 2 had approached the applicant bank for the grant of KCC Limit of Rs.22.88 Lacs and Term Loan of Rs.6.00 Lacs vide Loan Application dated 10.10.2014, which is Annexure A2 to this OA. Defendant No.3 stood as guarantor.

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Further, defendants requested the applicant bank to convert the overdues amount into Term Loan (FITL) of Rs.1,61,486.00. 3. The applicant Bank sanctioned the CC Limit of Rs.22.85 Lacs and Term Loan of Rs.6.00 Lacs vide Sanction Letters dated 18.10.2014, which are Annexures A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants. Later on request of defendants, applicant bank sanctioned a fresh term loan (FITL) of Rs.1,61,486.00 under Covid-19 Scheme under the guidelines of Reserve Bank of India. 4. Defendant Nos.1 and 2 had mortgaged their immovable properties i.e. total land measuring 61 Kanal 01 Marla situated at Village Duhewala, Tehsil Gidderbaha, District Sri Muktsar Sahib (Punjab) Letter to joint sub-Registrar for creation of charge and Declaration u/s 4(1) bearing vasika no.199 and Mutation Certificate both dated 19.11.2014 along with translation of Mutation Certificate , which is Annexure A11 to A13 to this OA. Documents executed:- Agreement for Term loan-cum-guarantee-cum hypothecation, Agreement for overdraft/cash credit-cum-guaranteecum-hypothecation, D.P. notes and Letters of continuity all dated 22.11.2014, which are Annexures A5 to A10 to this OA; Circulars issued by Reserve Bank of India dated 27.03.2020, 17.04.2020 and 23.05.2020, which are Annexures A14 to A16 to this OA; Notice dated 21.03.2022 with postal receipts, which are Annexures A17 to A20 to this OA and Statements of accounts along with Certificate, which are Annexures A21 and A23 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.36,97,748.00, which is recoverable and the

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defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 06.05.2024. 7. In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Assistant Manager, HDFC Bank Ltd. h as been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A23 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.36,97,748.00 (Rupees Thirty Six Lacs Ninety Seven Thousand Seven Hundred and Forty Eight only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest a) @12.00%p.a. with half yearly rests from 02.10.2021 in CC Limit b) @13.00%p.a. with half yearly rests from 20.03.2022 in Term Loan-I

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c) @12.00%p.a. with half yearly rests from 20.03.2022 in Term Loan-II till the realization. The Tribunal is of the considered opinion that sometimes in

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appropriate cases the prerogative of mercy is the brightest jewel in the

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crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,97,748.00 (Rupees Thirty Six Lacs Ninety Seven Thousand Seven Hundred and Forty Eight only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 26.07.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal . Dated: 08.07.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Ranjit Singh and Others

Case brief

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Hdfc Bank Limited v. Ranjit Singh and Others

Case brief

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